Jones, H 2006, 'The Surety Conundrum', in AB Fourie & M Tibbett (eds), Proceedings of the First International Seminar on Mine Closure
, Australian Centre for Geomechanics, Perth, pp. 475-485, https://doi.org/10.36487/ACG_repo/605_39
The paper outlines the requirement for financial sureties to cover the costs of mine closure from the
perspective of various stakeholders, in particular government regulators, mining companies, financial
organisations and the communities affected by the mining operations. It describes the development of the
Western Australian system of Unconditional Performance Bands.
Methods of calculating closure costs, including a risk based approach are outlined showing the sometimes
conflicting methods used by operators, governments and financial organisations respectively. The pros and
cons of these methods are discussed together with the requirement for ‘after care’, salvage values and asset
transfer to local communities.
The various types of financial sureties are discussed from the point of view of meeting the requirements of
the various stakeholders and the direct and indirect impacts on those stakeholders. The large sum of money
tied in financial sureties is effectively money removed from the mining industry and some implications of
this are outlined.
The ‘double charge’ of government financial surety requirements and corporate internal provisioning is
addressed and several potential methods of resolving this are outlined.
ANZMEC/MCA (2000) Strategic Framework for Mine Closure. Australian and New Zealand minerals and Energy
Council (ANZMEC) and Minerals Council of Australia (MCA). National Library of Australia Catalogue Data.
Mines Department (1985) Report on Conservation and Rehabilitation in the Gold-Mining Industry, November 1985.
UNEP, UNDP, OSCE & NATO (2005) Mining for Closure.
Solonyka, E. (2005) Calculation and Forms of Reclamation Security In Canada, CIM Conference, Best Practice for
Mine Reclamation Management, Vancouver, November 2005.
Department of Industry and Resources (2005) Annual Report 2004/05, pp. 19-20.
Jones, H. (2005) Making Financial Provision for Closure. Tailings and Paste Management and Decommissioning and
Water Management, Australian Centre for Geomechanics Seminar, November 2005.
Miller, C.G. (2005) Financial Assurance for Mine Closure and Reclamation. International Council on Mining and
Metals : www.icmm.com.
Miller, C.G. (1998) Use of Financial Surety for Environmental Purpose. International Council on Metals and the
Environment: Limited Edition series of discussion papers.
Athie, M. (2000) The World Bank’s Approach to Sustainable Mine Closure, Mine Closure for Decision Makers,
Australian Centre for Geomechanics Seminar, June 2000.
International Cyanide Management Institute (2006) International Cyanide Management Code For the Manufacture,
Transport, and Use of Cyanide In the Production of Gold. www.cyanidecode.org.
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